(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||
(Address, including Zip Code, and telephone number, including area code, of registrant's principal executive offices) | ||||||
Not Applicable | ||||||
Not Applicable | ||||||
(Former name, former address and former fiscal year, if changed since last report.) |
Securities registered pursuant to Section 12(b) of the Act: | |||||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered | |||||
Hertz Global Holdings, Inc. | par value $0.01 per share | ||||||
The Hertz Corporation | None | None | None |
HERTZ GLOBAL HOLDINGS, INC. THE HERTZ CORPORATION | ||
(each, a Registrant) | ||
By: | /s/ JAMERE JACKSON | |
Name: | Jamere Jackson | |
Title: | Executive Vice President and Chief Financial Officer |
• | Global revenue grew 3%, up 4% on a constant currency basis |
• | Record third quarter U.S. RAC revenues of $2.0 billion, up 6% |
• | U.S. RAC Transaction Days up 5%, Total RPD up 1% |
• | U.S. RAC Depreciation Per Unit Per Month decreased 5% |
• | Net income attributable to Hertz Global improved 20% |
• | Adjusted Corporate EBITDA improved 12% |
U.S. RAC | Three Months Ended September 30, | Percent Inc/(Dec) | ||||||||
($ in millions, except where noted) | 2019 | 2018 | ||||||||
Total revenues | $ | 1,962 | $ | 1,852 | 6 | % | ||||
Adjusted EBITDA | $ | 269 | $ | 208 | 29 | % | ||||
Adjusted EBITDA Margin | 14 | % | 11 | % | ||||||
Average Vehicles (in whole units) | 566,229 | 527,900 | 7 | % | ||||||
Vehicle Utilization | 79 | % | 81 | % | ||||||
Transaction Days (in thousands) | 41,399 | 39,478 | 5 | % | ||||||
Total RPD (in whole dollars) | $ | 46.67 | $ | 46.23 | 1 | % | ||||
Total RPU Per Month (in whole dollars) | $ | 1,137 | $ | 1,152 | (1 | )% | ||||
Depreciation Per Unit Per Month (in whole dollars) | $ | 247 | $ | 261 | (5 | )% |
International RAC | Three Months Ended September 30, | Percent Inc/(Dec) | ||||||||
($ in millions, except where noted) | 2019 | 2018 | ||||||||
Total revenues | $ | 702 | $ | 732 | (4 | )% | ||||
Adjusted EBITDA | $ | 115 | $ | 140 | (18 | )% | ||||
Adjusted EBITDA Margin | 16 | % | 19 | % | ||||||
Average Vehicles (in whole units) | 213,294 | 214,900 | (1 | )% | ||||||
Vehicle Utilization | 80 | % | 80 | % | ||||||
Transaction Days (in thousands) | 15,631 | 15,876 | (2 | )% | ||||||
Total RPD (in whole dollars) | $ | 45.67 | $ | 45.06 | 1 | % | ||||
Total RPU Per Month (in whole dollars) | $ | 1,116 | $ | 1,110 | 1 | % | ||||
Depreciation Per Unit Per Month (in whole dollars) | $ | 200 | $ | 194 | 3 | % |
All Other Operations | Three Months Ended September 30, | Percent Inc/(Dec) | ||||||||
($ in millions, except where noted) | 2019 | 2018 | ||||||||
Total revenues | $ | 172 | $ | 174 | (1 | )% | ||||
Adjusted EBITDA | $ | 24 | $ | 19 | 29 | % | ||||
Adjusted EBITDA Margin | 14 | % | 11 | % | ||||||
Average Vehicles (in whole units) - Donlen | 216,925 | 185,300 | 17 | % |
CONTACTS: | |
Investor Relations: | Media: |
Leslie Hunziker | Hertz Media Relations |
(239) 301-6800 | (239) 301-6300 |
investorrelations@hertz.com | mediarelations@hertz.com |
Three Months Ended September 30, | As a Percentage of Total Revenues | Nine Months Ended September 30, | As a Percentage of Total Revenues | ||||||||||||||||||||||||
(In millions, except per share data) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Total revenues | $ | 2,836 | $ | 2,758 | 100 | % | 100 | % | $ | 7,454 | $ | 7,209 | 100 | % | 100 | % | |||||||||||
Expenses: | |||||||||||||||||||||||||||
Direct vehicle and operating | 1,492 | 1,459 | 53 | % | 53 | % | 4,147 | 4,043 | 56 | % | 56 | % | |||||||||||||||
Depreciation of revenue earning vehicles and lease charges | 667 | 672 | 24 | % | 24 | % | 1,892 | 2,020 | 25 | % | 28 | % | |||||||||||||||
Selling, general and administrative | 232 | 265 | 8 | % | 10 | % | 723 | 765 | 10 | % | 11 | % | |||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||
Vehicle | 134 | 115 | 5 | % | 4 | % | 372 | 336 | 5 | % | 5 | % | |||||||||||||||
Non-vehicle | 70 | 73 | 2 | % | 3 | % | 214 | 218 | 3 | % | 3 | % | |||||||||||||||
Total interest expense, net | 204 | 188 | 7 | % | 7 | % | 586 | 554 | 8 | % | 8 | % | |||||||||||||||
Other (income) expense, net | (6 | ) | (7 | ) | — | % | — | % | (37 | ) | (36 | ) | — | % | — | % | |||||||||||
Total expenses | 2,589 | 2,577 | 91 | % | 93 | % | 7,311 | 7,346 | 98 | % | 102 | % | |||||||||||||||
Income (loss) before income taxes | 247 | 181 | 9 | % | 7 | % | 143 | (137 | ) | 2 | % | (2 | )% | ||||||||||||||
Income tax (provision) benefit | (74 | ) | (41 | ) | (3 | )% | (1 | )% | (78 | ) | 12 | (1 | )% | — | % | ||||||||||||
Net income (loss) | 173 | 140 | 6 | % | 5 | % | 65 | (125 | ) | 1 | % | (2 | )% | ||||||||||||||
Net (income) loss attributable to noncontrolling interests | (4 | ) | 1 | — | % | — | % | (4 | ) | 1 | — | % | — | % | |||||||||||||
Net income (loss) attributable to Hertz Global | $ | 169 | $ | 141 | 6 | % | 5 | % | $ | 61 | $ | (124 | ) | 1 | % | (2 | )% | ||||||||||
Weighted-average number of shares outstanding(a): | |||||||||||||||||||||||||||
Basic | 133 | 96 | 109 | 95 | |||||||||||||||||||||||
Diluted | 134 | 96 | 109 | 95 | |||||||||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||||||||
Basic | $ | 1.26 | $ | 1.47 | $ | 0.56 | $ | (1.30 | ) | ||||||||||||||||||
Diluted | $ | 1.26 | $ | 1.47 | $ | 0.56 | $ | (1.30 | ) | ||||||||||||||||||
Adjusted Net Income (Loss)(b) | $ | 214 | $ | 180 | $ | 202 | $ | 33 | |||||||||||||||||||
Adjusted Diluted Earnings (Loss) Per Share(b) | $ | 1.60 | $ | 1.88 | $ | 1.85 | $ | 0.34 | |||||||||||||||||||
Adjusted Corporate EBITDA(b) | $ | 392 | $ | 351 | $ | 595 | $ | 384 |
(a) | Basic weighted-average shares and weighted-average shares used to calculate diluted earnings (loss) per share for the three and nine months ended September 30, 2018 have been adjusted to give effect to the Rights Offering. |
(b) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule II. |
(In millions) | As of September 30, 2019 | As of December 31, 2018 | |||||
Cash and cash equivalents | $ | 465 | $ | 1,127 | |||
Total restricted cash and cash equivalents | 230 | 283 | |||||
Revenue earning vehicles, net: | |||||||
U.S. Rental Car | 10,686 | 8,793 | |||||
International Rental Car | 2,930 | 2,146 | |||||
All Other Operations | 1,670 | 1,480 | |||||
Total revenue earning vehicles, net | 15,286 | 12,419 | |||||
Total assets(a) | 25,541 | 21,382 | |||||
Total debt | 18,041 | 16,324 | |||||
Net Vehicle Debt(b) | 14,162 | 11,688 | |||||
Net Non-vehicle Debt(b) | 3,293 | 3,328 | |||||
Total stockholders' equity | 1,989 | 1,120 |
(a) | On January 1, 2019, the Company adopted new lease guidance under U.S. GAAP and recorded a net cumulative-effect adjustment of $1.5 billion to recognize assets associated with the Company's leases as of that date. |
(b) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedule V. |
Nine Months Ended September 30, | |||||||
(In millions) | 2019 | 2018 | |||||
Cash flows provided by (used in): | |||||||
Operating activities | $ | 2,233 | $ | 2,017 | |||
Investing activities | (5,492 | ) | (4,799 | ) | |||
Financing activities | 2,551 | 2,308 | |||||
Effect of exchange rate changes | (7 | ) | (4 | ) | |||
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | $ | (715 | ) | $ | (478 | ) | |
Fleet Growth(a) | $ | (725 | ) | $ | (252 | ) | |
Adjusted Free Cash Flow(a) | $ | (645 | ) | $ | (237 | ) |
(a) | Represents a non-GAAP measure, see the accompanying reconciliations included in Supplemental Schedules III and IV. |
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||
(In millions) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global | |||||||||||||||||||||||||||||
Total revenues: | $ | 1,962 | $ | 702 | $ | 172 | $ | — | $ | 2,836 | $ | 1,852 | $ | 732 | $ | 174 | $ | — | $ | 2,758 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 1,099 | 386 | 7 | — | 1,492 | 1,068 | 384 | 8 | (1 | ) | 1,459 | ||||||||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges | 420 | 126 | 121 | — | 667 | 414 | 128 | 130 | — | 672 | |||||||||||||||||||||||||||||
Selling, general and administrative | 125 | 60 | 8 | 39 | 232 | 128 | 65 | 10 | 62 | 265 | |||||||||||||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||||||||||||||
Vehicle | 93 | 27 | 14 | — | 134 | 79 | 25 | 11 | — | 115 | |||||||||||||||||||||||||||||
Non-vehicle | (49 | ) | (1 | ) | (6 | ) | 126 | 70 | (40 | ) | — | (4 | ) | 117 | 73 | ||||||||||||||||||||||||
Total interest expense, net | 44 | 26 | 8 | 126 | 204 | 39 | 25 | 7 | 117 | 188 | |||||||||||||||||||||||||||||
Other (income) expense, net | (3 | ) | 1 | — | (4 | ) | (6 | ) | — | (1 | ) | — | (6 | ) | (7 | ) | |||||||||||||||||||||||
Total expenses | 1,685 | 599 | 144 | 161 | 2,589 | 1,649 | 601 | 155 | 172 | 2,577 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 277 | $ | 103 | $ | 28 | $ | (161 | ) | $ | 247 | $ | 203 | $ | 131 | $ | 19 | $ | (172 | ) | $ | 181 | |||||||||||||||||
Income tax (provision) benefit | (74 | ) | (41 | ) | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 173 | $ | 140 | |||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (4 | ) | 1 | ||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Hertz Global | $ | 169 | $ | 141 |
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||
(In millions) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global | U.S. Rental Car | Int'l Rental Car | All Other Operations | Corporate | Hertz Global | |||||||||||||||||||||||||||||
Total revenues: | $ | 5,266 | $ | 1,695 | $ | 493 | $ | — | $ | 7,454 | $ | 4,905 | $ | 1,789 | $ | 515 | $ | — | $ | 7,209 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||||||
Direct vehicle and operating | 3,127 | 1,001 | 20 | (1 | ) | 4,147 | 3,016 | 1,006 | 25 | (4 | ) | 4,043 | |||||||||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges | 1,217 | 329 | 346 | — | 1,892 | 1,295 | 342 | 383 | — | 2,020 | |||||||||||||||||||||||||||||
Selling, general and administrative | 365 | 169 | 23 | 166 | 723 | 345 | 186 | 28 | 206 | 765 | |||||||||||||||||||||||||||||
Interest expense, net: | |||||||||||||||||||||||||||||||||||||||
Vehicle | 260 | 73 | 39 | — | 372 | 216 | 88 | 32 | — | 336 | |||||||||||||||||||||||||||||
Non-vehicle | (141 | ) | (3 | ) | (15 | ) | 373 | 214 | (105 | ) | — | (12 | ) | 335 | 218 | ||||||||||||||||||||||||
Total interest expense, net | 119 | 70 | 24 | 373 | 586 | 111 | 88 | 20 | 335 | 554 | |||||||||||||||||||||||||||||
Other (income) expense, net | (16 | ) | 1 | — | (22 | ) | (37 | ) | (7 | ) | (2 | ) | — | (27 | ) | (36 | ) | ||||||||||||||||||||||
Total expenses | 4,812 | 1,570 | 413 | 516 | 7,311 | 4,760 | 1,620 | 456 | 510 | 7,346 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 454 | $ | 125 | $ | 80 | $ | (516 | ) | $ | 143 | $ | 145 | $ | 169 | $ | 59 | $ | (510 | ) | $ | (137 | ) | ||||||||||||||||
Income tax (provision) benefit | (78 | ) | 12 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 65 | $ | (125 | ) | ||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (4 | ) | 1 | ||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Hertz Global | $ | 61 | $ | (124 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In millions, except per share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share: | |||||||||||||||
Net income (loss) attributable to Hertz Global | $ | 169 | $ | 141 | $ | 61 | $ | (124 | ) | ||||||
Adjustments: | |||||||||||||||
Income tax provision (benefit) | 74 | 41 | 78 | (12 | ) | ||||||||||
Vehicle and non-vehicle debt-related charges(a) | 13 | 11 | 40 | 36 | |||||||||||
Loss on extinguishment of debt(b) | 4 | — | 4 | 22 | |||||||||||
Restructuring and restructuring related charges(c) | 1 | 12 | 11 | 26 | |||||||||||
Information technology and finance transformation costs(d) | 17 | 24 | 77 | 75 | |||||||||||
Acquisition accounting-related depreciation and amortization(e) | 14 | 15 | 41 | 46 | |||||||||||
Other items(f) | (7 | ) | (4 | ) | (43 | ) | (25 | ) | |||||||
Adjusted pre-tax income (loss)(g) | 285 | 240 | 269 | 44 | |||||||||||
Income tax (provision) benefit on adjusted pre-tax income (loss)(h) | (71 | ) | (60 | ) | (67 | ) | (11 | ) | |||||||
Adjusted Net Income (Loss) | $ | 214 | $ | 180 | $ | 202 | $ | 33 | |||||||
Weighted-average number of diluted shares outstanding | 134 | 96 | 109 | 95 | |||||||||||
Adjusted Diluted Earnings (Loss) Per Share(i) | $ | 1.60 | $ | 1.88 | $ | 1.85 | $ | 0.34 | |||||||
Adjusted Corporate EBITDA: | |||||||||||||||
Net income (loss) attributable to Hertz Global | 169 | 141 | 61 | (124 | ) | ||||||||||
Adjustments: | |||||||||||||||
Income tax provision (benefit) | 74 | 41 | 78 | (12 | ) | ||||||||||
Non-vehicle depreciation and amortization(j) | 51 | 52 | 151 | 166 | |||||||||||
Non-vehicle debt interest, net of interest income | 70 | 73 | 214 | 218 | |||||||||||
Vehicle debt-related charges(a),(k) | 10 | 7 | 29 | 25 | |||||||||||
Loss on extinguishment of vehicle debt(b) | — | — | — | 22 | |||||||||||
Restructuring and restructuring related charges(c) | 1 | 12 | 11 | 26 | |||||||||||
Information technology and finance transformation costs(d) | 17 | 24 | 77 | 75 | |||||||||||
Other items(f),(l) | — | 1 | (26 | ) | (12 | ) | |||||||||
Adjusted Corporate EBITDA | $ | 392 | $ | 351 | $ | 595 | $ | 384 |
(a) | Represents debt-related charges relating to the amortization of deferred financing costs and debt discounts and premiums. |
(b) | In 2019, represents a $4 million write-off of deferred financing costs associated with the full redemption of the 5.875% Senior Notes due October 2020 and 7.375% Senior Notes due January 2021. In 2018, primarily represents $20 million of early redemption premium and write-off of deferred financing costs associated with the full redemption of the 4.375% European Vehicle Senior Notes due January 2019 in April 2018. |
(c) | Represents charges incurred under restructuring actions as defined in U.S. GAAP, excluding impairments and asset write-downs. Also includes restructuring related charges such as incremental costs incurred directly supporting business transformation initiatives. In 2018, also includes consulting costs, legal fees, and other expenses related to the previously disclosed accounting review and investigation. |
(d) | Represents costs associated with the Company’s information technology and finance transformation programs, both of which are multi-year initiatives to upgrade and modernize the Company’s systems and processes. These costs relate primarily to the Company's corporate operations ("Corporate"). |
(e) | Represents incremental expense associated with the amortization of other intangible assets and depreciation of property and equipment relating to acquisition accounting. |
(f) | Represents miscellaneous items. In 2019, includes a $26 million gain on marketable securities in Corporate, of which $6 million was recorded during the third quarter of 2019, and a $15 million gain on the sale of non-vehicle capital assets in U.S. RAC, of which $3 million was recorded in the third quarter of 2019. In 2018, includes a $21 million gain on marketable securities, of which $4 million was recorded in the third quarter of 2018, and a $6 million legal settlement received in the second quarter related to an oil spill in the Gulf of Mexico in 2010, all of which relate to Corporate. |
(g) | Adjustments by caption on a pre-tax basis are as follows: |
Increase (decrease) to expenses | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(In millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Direct vehicle and operating | $ | (13 | ) | $ | (15 | ) | $ | (40 | ) | $ | (48 | ) | |||
Selling, general and administrative | (17 | ) | (36 | ) | (83 | ) | (99 | ) | |||||||
Interest expense, net: | |||||||||||||||
Vehicle | (10 | ) | (7 | ) | (29 | ) | (47 | ) | |||||||
Non-vehicle | (7 | ) | (4 | ) | (15 | ) | (11 | ) | |||||||
Total interest expense, net | (17 | ) | (11 | ) | (44 | ) | (58 | ) | |||||||
Other income (expense), net | 5 | 4 | 37 | 25 | |||||||||||
Noncontrolling interests | 4 | (1 | ) | 4 | (1 | ) | |||||||||
Total adjustments | $ | (38 | ) | $ | (59 | ) | $ | (126 | ) | $ | (181 | ) |
(h) | Derived utilizing a combined statutory rate of 25% for the periods ending September 30, 2019 and 2018 applied to the respective Adjusted Pre-tax Income (Loss). |
(i) | Adjustments used to reconcile diluted earnings (loss) per share on a GAAP basis to Adjusted Diluted Earnings (Loss) Per Share are comprised of the same adjustments, inclusive of the tax impact, used to reconcile net income (loss) to Adjusted Net Income (Loss) divided by the weighted-average diluted shares outstanding during the period. |
(j) | Non-vehicle depreciation and amortization expense for U.S. RAC, International RAC, All Other Operations and Corporate for the three months ended September 30, 2019 are $38 million, $6 million, $3 million and $4 million, respectively, and for the three months ended September 30, 2018 are $38 million, $8 million, $2 million and $4 million respectively. Non-vehicle depreciation and amortization expense for U.S. RAC, International RAC, All Other Operations and Corporate for the nine months ended September 30, 2019 are $116 million, $18 million, $8 million and $9 million, respectively, and for the nine months ended September 30, 2018 are $121 million, $25 million, $7 million and $13 million, respectively. |
(k) | Vehicle debt related charges for U.S. RAC, International RAC and All Other Operations for the three months ended September 30, 2019 are $6 million, $3 million and $1 million, respectively, and for the three months ended September 30, 2018 are $5 million, $1 million, and $1 million, respectively. Vehicle debt related charges for U.S. RAC, International RAC and All Other Operations for the nine months ended September 30, 2019 are $16 million, $10 million and $3 million, respectively, and for the nine months ended September 30, 2018 are $17 million, $5 million and $3 million, respectively. |
(l) | Also includes an adjustment for non-cash stock-based compensation charges in Corporate. |
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||||
(In millions) | U.S. Rental Car | Int'l Rental Car | All Other Operations | Hertz Global | U.S. Rental Car | Int'l Rental Car | All Other Operations | Hertz Global | |||||||||||||||||||||||
Revenue earning vehicles expenditures | $ | (7,740 | ) | $ | (3,021 | ) | $ | (775 | ) | $ | (11,536 | ) | $ | (6,644 | ) | $ | (2,876 | ) | $ | (556 | ) | $ | (10,076 | ) | |||||||
Proceeds from disposal of revenue earning vehicles | 4,267 | 1,730 | 196 | 6,193 | 3,568 | 1,675 | 135 | 5,378 | |||||||||||||||||||||||
Net revenue earning vehicles capital expenditures | (3,473 | ) | (1,291 | ) | (579 | ) | (5,343 | ) | (3,076 | ) | (1,201 | ) | (421 | ) | (4,698 | ) | |||||||||||||||
Depreciation and reserves for revenue earning vehicles | 1,418 | 292 | 346 | 2,056 | 1,295 | 275 | 382 | 1,952 | |||||||||||||||||||||||
Financing activity related to vehicles: | |||||||||||||||||||||||||||||||
Borrowings | 7,935 | 2,078 | 1,026 | 11,039 | 8,503 | 2,554 | 814 | 11,871 | |||||||||||||||||||||||
Payments | (6,411 | ) | (1,313 | ) | (814 | ) | (8,538 | ) | (6,993 | ) | (1,794 | ) | (738 | ) | (9,525 | ) | |||||||||||||||
Restricted cash changes | 85 | (19 | ) | (5 | ) | 61 | 138 | 24 | (14 | ) | 148 | ||||||||||||||||||||
Net financing activity related to vehicles | 1,609 | 746 | 207 | 2,562 | 1,648 | 784 | 62 | 2,494 | |||||||||||||||||||||||
Fleet Growth | $ | (446 | ) | $ | (253 | ) | $ | (26 | ) | $ | (725 | ) | $ | (133 | ) | $ | (142 | ) | $ | 23 | $ | (252 | ) |
Nine Months Ended September 30, | |||||||
(In millions) | 2019 | 2018 | |||||
Net cash provided by operating activities | $ | 2,233 | $ | 2,017 | |||
Net change in restricted cash and cash equivalents, vehicle(a) | 61 | 148 | |||||
Revenue earning vehicles expenditures | (11,536 | ) | (10,076 | ) | |||
Proceeds from disposal of revenue earning vehicles | 6,193 | 5,378 | |||||
Capital asset expenditures, non-vehicle | (170 | ) | (119 | ) | |||
Proceeds from property and other equipment disposed of or to be disposed of | 21 | 47 | |||||
Proceeds from issuance of vehicle debt | 11,039 | 11,871 | |||||
Repayments of vehicle debt | (8,538 | ) | (9,525 | ) | |||
Noncontrolling interests | 52 | 22 | |||||
Adjusted Free Cash Flow(b) | $ | (645 | ) | $ | (237 | ) |
(a) | Amount presented for the nine months ended September 30, 2018 excludes a $2 million non-cash impact of foreign currency exchange rates. |
(b) | During the third quarter 2019, the Company changed its definition of Adjusted Free Cash Flow and revised its reconciliation for the nine months ended September 30, 2018 accordingly. |
As of September 30, 2019 | As of December 31, 2018 | ||||||||||||||||||||||
(In millions) | Vehicle | Non-Vehicle | Total | Vehicle | Non-Vehicle | Total | |||||||||||||||||
Debt as reported in the balance sheet | $ | 14,314 | $ | 3,727 | $ | 18,041 | $ | 11,902 | $ | 4,422 | $ | 16,324 | |||||||||||
Add: | |||||||||||||||||||||||
Debt issue costs, discounts and premiums | 44 | 31 | 75 | 43 | 33 | 76 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Cash and cash equivalents | — | 465 | 465 | — | 1,127 | 1,127 | |||||||||||||||||
Restricted cash | 196 | — | 196 | 257 | — | 257 | |||||||||||||||||
Net Debt | $ | 14,162 | $ | 3,293 | $ | 17,455 | $ | 11,688 | $ | 3,328 | $ | 15,016 |
Three Months Ended September 30, | Percent Inc/(Dec) | Nine Months Ended September 30, | Percent Inc/(Dec) | ||||||||||||||||||
($ in millions, except where noted) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Total RPD | |||||||||||||||||||||
Revenues | $ | 1,962 | $ | 1,852 | $ | 5,266 | $ | 4,905 | |||||||||||||
Ancillary retail vehicle sales revenue | (30 | ) | (27 | ) | (92 | ) | (78 | ) | |||||||||||||
Total Rental Revenues | $ | 1,932 | $ | 1,825 | $ | 5,174 | $ | 4,827 | |||||||||||||
Transaction Days (in thousands) | 41,399 | 39,478 | 118,153 | 112,427 | |||||||||||||||||
Total RPD (in whole dollars) | $ | 46.67 | $ | 46.23 | 1 | % | $ | 43.79 | $ | 42.93 | 2 | % | |||||||||
Total Revenue Per Unit Per Month | |||||||||||||||||||||
Total Rental Revenues | $ | 1,932 | $ | 1,825 | $ | 5,174 | $ | 4,827 | |||||||||||||
Average Vehicles (in whole units) | 566,229 | 527,900 | 540,930 | 509,800 | |||||||||||||||||
Total revenue per unit (in whole dollars) | $ | 3,412 | $ | 3,457 | $ | 9,565 | $ | 9,468 | |||||||||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||||||||||||
Total RPU Per Month (in whole dollars) | $ | 1,137 | $ | 1,152 | (1 | )% | $ | 1,063 | $ | 1,052 | 1 | % | |||||||||
Vehicle Utilization | |||||||||||||||||||||
Transaction Days (in thousands) | 41,399 | 39,478 | 118,153 | 112,427 | |||||||||||||||||
Average Vehicles (in whole units) | 566,229 | 527,900 | 540,930 | 509,800 | |||||||||||||||||
Number of days in period (in whole units) | 92 | 92 | 273 | 273 | |||||||||||||||||
Available Car Days (in thousands) | 52,093 | 48,567 | 147,674 | 139,175 | |||||||||||||||||
Vehicle Utilization(a) | 79 | % | 81 | % | 80 | % | 81 | % | |||||||||||||
Depreciation Per Unit Per Month | |||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges | $ | 420 | $ | 414 | $ | 1,217 | $ | 1,295 | |||||||||||||
Average Vehicles (in whole units) | 566,229 | 527,900 | 540,930 | 509,800 | |||||||||||||||||
Depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars) | $ | 742 | $ | 784 | $ | 2,250 | $ | 2,540 | |||||||||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||||||||||||
Depreciation Per Unit Per Month (in whole dollars) | $ | 247 | $ | 261 | (5 | )% | $ | 250 | $ | 282 | (11 | )% |
(a) | Calculated as Transaction Days divided by Available Car Days. |
Three Months Ended September 30, | Percent Inc/(Dec) | Nine Months Ended September 30, | Percent Inc/(Dec) | ||||||||||||||||||
($ in millions, except where noted) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Total RPD | |||||||||||||||||||||
Revenues | $ | 702 | $ | 732 | $ | 1,695 | $ | 1,789 | |||||||||||||
Foreign currency adjustment(a) | 12 | (17 | ) | 14 | (79 | ) | |||||||||||||||
Total Rental Revenues | $ | 714 | $ | 715 | $ | 1,709 | $ | 1,710 | |||||||||||||
Transaction Days (in thousands) | 15,631 | 15,876 | 38,884 | 39,075 | |||||||||||||||||
Total RPD (in whole dollars) | $ | 45.67 | $ | 45.06 | 1 | % | $ | 43.95 | $ | 43.76 | — | % | |||||||||
Total Revenue Per Unit Per Month | |||||||||||||||||||||
Total Rental Revenues | $ | 714 | $ | 715 | $ | 1,709 | $ | 1,710 | |||||||||||||
Average Vehicles (in whole units) | 213,294 | 214,900 | 184,307 | 183,600 | |||||||||||||||||
Total revenue per unit (in whole dollars) | $ | 3,347 | $ | 3,327 | $ | 9,273 | $ | 9,314 | |||||||||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||||||||||||
Total RPU Per Month (in whole dollars) | $ | 1,116 | $ | 1,110 | 1 | % | $ | 1,030 | $ | 1,035 | — | % | |||||||||
Vehicle Utilization | |||||||||||||||||||||
Transaction Days (in thousands) | 15,631 | 15,876 | 38,884 | 39,075 | |||||||||||||||||
Average Vehicles (in whole units) | 213,294 | 214,900 | 184,307 | 183,600 | |||||||||||||||||
Number of days in period (in whole units) | 92 | 92 | 273 | 273 | |||||||||||||||||
Available Car Days (in thousands) | 19,623 | 19,771 | 50,316 | 50,123 | |||||||||||||||||
Vehicle Utilization(b) | 80 | % | 80 | % | 77 | % | 78 | % | |||||||||||||
Depreciation Per Unit Per Month | |||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges | $ | 126 | $ | 128 | $ | 329 | $ | 342 | |||||||||||||
Foreign currency adjustment(a) | 2 | (3 | ) | 3 | (16 | ) | |||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges | $ | 128 | $ | 125 | $ | 332 | $ | 326 | |||||||||||||
Average Vehicles (in whole units) | 213,294 | 214,900 | 184,307 | 183,600 | |||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars) | $ | 600 | $ | 582 | $ | 1,801 | $ | 1,776 | |||||||||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||||||||||||
Depreciation Per Unit Per Month (in whole dollars) | $ | 200 | $ | 194 | 3 | % | $ | 200 | $ | 197 | 2 | % |
(a) | Based on December 31, 2018 foreign exchange rates. |
(b) | Calculated as Transaction Days divided by Available Car Days. |
Three Months Ended September 30, | Percent Inc/(Dec) | Nine Months Ended September 30, | Percent Inc/(Dec) | ||||||||||||||||||
($ in millions, except where noted) | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Total RPD | |||||||||||||||||||||
Revenues | $ | 2,664 | $ | 2,584 | $ | 6,961 | $ | 6,694 | |||||||||||||
Ancillary retail vehicle sales revenue | (30 | ) | (27 | ) | (92 | ) | (78 | ) | |||||||||||||
Foreign currency adjustment(a) | 12 | (17 | ) | 14 | (79 | ) | |||||||||||||||
Total Rental Revenues | $ | 2,646 | $ | 2,540 | $ | 6,883 | $ | 6,537 | |||||||||||||
Transaction Days (in thousands) | 57,030 | 55,354 | 157,037 | 151,502 | |||||||||||||||||
Total RPD (in whole dollars) | $ | 46.40 | $ | 45.88 | 1 | % | $ | 43.83 | $ | 43.15 | 2 | % | |||||||||
Total Revenue Per Unit Per Month | |||||||||||||||||||||
Total Rental Revenues | $ | 2,646 | $ | 2,540 | $ | 6,883 | $ | 6,537 | |||||||||||||
Average Vehicles (in whole units) | 779,523 | 742,800 | 725,237 | 693,400 | |||||||||||||||||
Total revenue per unit (in whole dollars) | $ | 3,394 | $ | 3,419 | $ | 9,491 | $ | 9,427 | |||||||||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||||||||||||
Total RPU Per Month (in whole dollars) | $ | 1,132 | $ | 1,140 | (1 | )% | $ | 1,055 | $ | 1,047 | 1 | % | |||||||||
Vehicle Utilization | |||||||||||||||||||||
Transaction Days (in thousands) | 57,030 | 55,354 | 157,037 | 151,502 | |||||||||||||||||
Average Vehicles (in whole units) | 779,523 | 742,800 | 725,237 | 693,400 | |||||||||||||||||
Number of days in period (in whole units) | 92 | 92 | 273 | 273 | |||||||||||||||||
Available Car Days (in thousands) | 71,716 | 68,338 | 197,990 | 189,298 | |||||||||||||||||
Vehicle Utilization(b) | 80 | % | 81 | % | 79 | % | 80 | % | |||||||||||||
Depreciation Per Unit Per Month | |||||||||||||||||||||
Depreciation of revenue earning vehicles and lease charges | $ | 546 | $ | 542 | $ | 1,546 | $ | 1,637 | |||||||||||||
Foreign currency adjustment(a) | 2 | (3 | ) | 3 | (16 | ) | |||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges | $ | 548 | $ | 539 | $ | 1,549 | $ | 1,621 | |||||||||||||
Average Vehicles (in whole units) | 779,523 | 742,800 | 725,237 | 693,400 | |||||||||||||||||
Adjusted depreciation of revenue earning vehicles and lease charges divided by Average Vehicles (in whole dollars) | $ | 703 | $ | 726 | $ | 2,136 | $ | 2,338 | |||||||||||||
Number of months in period (in whole units) | 3 | 3 | 9 | 9 | |||||||||||||||||
Depreciation Per Unit Per Month (in whole dollars) | $ | 234 | $ | 242 | (3 | )% | $ | 237 | $ | 260 | (9 | )% |
(a) | Based on December 31, 2018 foreign exchange rates. |
(b) | Calculated as Transaction Days divided by Available Car Days. |
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